Beef11":4pwxxgu9 said:What kind of friend is this?
Long time childhood friend or work friend, neighbor friend, ect.... It makes a difference.
Then the next thing would be... Is the possible profit from this joint venture worth possibly losing that friend?
It does not have to come to that but it may and you need to know how this "friend" ranks in your book.
After that yall need to sit down and talk out exactly how this is going to be ran. Are yall going in as equal partners, is he a silent partner, is he soley and investor. Basically you got to know in the end who makes the call.
I would be weary of equal partnerships but if it is actually possible for that person to invest and let you make the final calls then it could be a good deal.
Last of all,,, after yall have figured out where every one stands,,, put it in writing. Make up basically a contract that says every thing yall have decided on. That away every thing is done according to how it was stated by both parties or there will be penalties. IF you make the calls.... he is just an investor... and he startes pushing his way in trying to make calls you want the contract to cover you so you can get out with your fair share and/ or compensation.
I guess he is a church friend, I've known him about 6 months both of us are serial entrepreneurs. He has made big bucks and wants to invest in something real and available should hard times come. Basically if hard times come he wants to come over and eat steak, if we don't have hard times he wants a decent return on investment.
Beef11":2epklur5 said:Never use investors not worth 1m? Never heard that before. Why not? I have my ideas why but i would like to hear yours. I like it.
Brute 23":2bbok1on said:One other thing I might add is,
People should NOT get into the cattle business soley to make money.
Every one here knows there are a list of alot easier and more productive ways to make money.
First and foremost the investor has to want to be in the cattle business for personal reasons. The opportunity to actually profit money a couple years down the road has to be iceing on the cake.
They should have a well diversified invesment portfolio already established and this is just another investment to add basically because they can.
People investing in cattle expecting it to be their retirement money down the road is another NO-NO when looking at possible investors.
Running Arrow Bill":l0bwr2ua said:IMO an "Investor" is an opportunist hoping to turn a profit on his/her investment. Investing in livestock is in no way a sure road to any type of profit. If an investor doesn't receive a "profit" or "dividend check" every year, then he/she becomes an emotional and financial liability on YOUR end.
A family or friend investor is even a worse option...
If the investor doesn't see a $$ return on the investment, then he/she may want to cash out his/her $$ input; and/or want to start telling you how to run your business.
IMO it is an accident waiting to happen...
Jogeephus":51zdjzxs said:Add a person add a problem. Besides, you may already have one boss and if so I'm pretty sure she wants you to pick up some milk and eggs and a loaf of bread and don't forget to do the dishes before you go to bed. :lol:
Why the negative advice? Didn't you all hear this friend goes to church?
Beef11, I grew up in your region, and I'm guessing I'm a member of your church, and I must say, it ain't no guarantee of honesty and virtue.
But, sounds like you're going to do what you're going to do. Few people change their direction based on advice given. Have to learn from experience.